Kenyan billionaire and founder of Equity Group, Peter Munga, is in a dire situation as creditors move to auction his properties to recoup outstanding debts.
According to reports from Business Daily Africa, three properties belonging to the businessman are set to be on sale on the scheduled auction date.
Munga, along with his business associate James Karanja, had secured credit facilities of unspecified amounts, relying on guarantees provided by their firms, Equatorial Nut Processors and Meru Ginnery, both of which own the assets now up for sale.
A notice issued by Legacy Auctioneering Services revealed two vacant commercial properties, totaling 0.36 acres in Murang’a County, will carry the “on-sale” tag by October 13, 2023. These land parcels are held under leasehold agreements.
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Furthermore, the auctioneer has been tasked with selling an industrial-cum-residential property in Meru County, spanning 15.6 acres, on October 17, 2023.
While the exact debt amount remains undisclosed, an inside source at Legacy Auctioneering Services hinted that it amounts to millions of shillings. However, they refrained from revealing the identities of the creditors.
Peter Munga is among several high-profile entrepreneurs who have faced auctions in recent years due to unpaid bank loans, some of which run into hundreds of millions of shillings.
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